महर्षिभिः by ascetics, पूज्यमानः worshipped by, तत्र there, सुखितः peacefully, उवास stayed, भ्रात्रा brother, लक्ष्मणेन सह with Lakshmana, विविधाः diverse, कथाः talks, चकार making.

Honoured by the ascetics , Rama stayed there peacefully with brother Lakshmana, discussing diverse matters (from time to time).